Under the Anti Money Laundering and Counter- Terrorism Financing Act,a financial institution is prohibited from entering into a 'correspondent banking relationship' with another financial institution unless:

Question

Quizplus · Accepted Answer

Option B is the correct answer because according to the Anti Money Laundering and Counter- Terrorism Financing Act, a financial institution must carry out a due diligence assessment of the possible AML/CTF risks before entering into a correspondent banking relationship with another financial institution. Options A and C are incorrect as the Act does not require a correspondent bank to be a bona fide shelf bank or the establishment of a prospero account on behalf of a foreign financial institution.